Attached for your information is the City’s investment portfolio report for the third quarter 2017. At September 30, the weighted average yield for the portfolio for the quarter was 1.27%, which exceeded our benchmark by 4 basis points. Our benchmark is the 12-month trailing rate of the 2-year Treasury Note, which earned 1.23% as of September 30. The weighted average effective maturity at quarter end was 613 days.

In addition to the securities disclosed in the attached portfolio report, as of September 30, the City owned Certificates of Deposit as described below:

InstitutionCertificate AmountMaturity Date___Yield

Bank of Ann Arbor$251,507.82October 6, 20170.40

Ann Arbor State Bank$250,000.00May 19, 20181.25

Flagstar Bank$251,322.22October 6, 20170.85

The City also invests in a short-term liquidity investment as described below:

InstitutionBalance at Quarter EndMaturity Date___Yield

Michigan Cooperative$9,030,829.81NA1.18

Liquid Assets Securities

System

The Governmental Accounting Standards Board requires under Statement 31 that all investments be recorded at fair value versus amortized cost. At quarter end, the amortized cost value of the portfolio was $258,652,611.53. If investments were recorded using the fair value method, the value of the portfolio would be $257,442,424.70. Recording investments at fair market value, the portfolio experienced an unrealized loss of $1,210,186.83.